During the first half of the year, Spirent Communications posted great performance and record orders thanks to 5G and its targeting of new clients, including hyperscalers with assurance solutions. The company is "executing well on our plan of pushing further into the exciting structural growth areas of our industry, from wireless 5G networks to the internet of things and cloud assurance," according to CEO Eric Updyke.
Spirent's first-half revenues of $280.1 million was the result of robust growth across all of the end markets. The business said that 5G "repeatedly demonstrated to be a powerful, persistent growth engine," noting that it had won more than 350 new contracts from more than 130 clients in the first half of the year.
The business said that it had increased sales spending in order to focus on new clients, including chipset makers and give hyperscalers cloud assurance. Revenues in the networks and security category increased by 9% from the first half of 2021, according to the business, which attributed the growth to more data traffic and renovations to data centres. Revenues in its services and managed solutions business segment increased by 17% from the first half of 2021, while those in its lifecycle service assurance business segment increased by 10% from the same time in the previous year. For the first half of the year, 45% of Spirent's revenues came from the latter segment.
In addition, Spirent claimed that since purchasing octoScope in 2021, Wi-Fi testing had shown "excellent growth." Spirent added that their new Vantage real-time assurance product was introduced in July in order to "address expanding demand outside of North America.
Spirent stated that it has managed component delays with "little impact" to its delivery schedules with regard to supply chain difficulties but that it anticipates needing to "more actively manage supply chain risks during the balance of the year."